Wokai launch

Wokai.org launched today. Wokai allows contributers to aid small entrepreneurs in China through microfinance. A month ago I wrote a preview about Wokai.

Here is what founders Casey Wilson and Courtney McColgan wrote about launching:

Dear Friends,

We are delighted to report that Wokai.org is now live! Just two years ago, we were students in Beijing, dreaming about starting a microfinance organization.

Now, thanks to our advisors, chapters, designers, donors, families, field partners, friends, interns, investment committee, lawyers, pilot participants, programmers, volunteers and so many more, this idea has transformed into a dynamic international organization with an amazing website, to empower people in China to lift themselves from poverty.

We needed you and you were there, and for this we can’t thank you enough. Over the next two years, 44OO families from all across rural China will receive loans through Wokai. These loans will enable people to start and grow businesses in their communities. With the proceeds, they will send their children to school, and invest in their housing and health and brighter futures.

In the words of an entrepreneur we met in Ningxia province, “Microfinance allowed us to go from existing to living … existing is merely finding enough food to eat, but living is truly feeling the substance of life, our hearts, and minds.”

Thank you so much!

Wokai preview – donate to enable microfinance

Non profit Wokai.org will allow contributers to donate to give microfinance loans to borrowers in China. Like Kiva and MyC4, Wokai partners with local MFIs which identify and screen potential microentrepreneur clients. Selected clients are then posted on the Wokai website through profiles that outline their business ventures and loan request. Contributers can select borrowers to fund and pay via Google Checkout, the money is then transferred to the MFI who disperse the capital to the microentrepreneurs. Field partners charge interest rates typically ranging from 8-20% to cover the high costs associated with providing loans, training, monitoring and support services to our borrowers. At the end of the loan-cycle the money is collected and re-issued by the MFI for new loans – so there is no payback to the contributers.

See this video for a good overview on Wokai.

The name “Wokai” means “I start” in Chinese.

Wokai has not launched yet, but I could participate in a pre-launch test drive. The platform has more social networking features then other platforms allowing for discussions and users asking questions to the MFIs/borrowers.

Wokai began in the fall of 2006 when Wokai co-founders Courtney McColgan and Casey Wilson met while studying advanced Chinese at Tsinghua University. The idea of Wokai gradually transformed into a plan of action and, with the help of a team of supporters, evolved into a startup nonprofit.

Wokai screenshot (pre-launch 10/20/08)

Wokai screenshot (pre-launch 10/20/08)

P2P lending Asia

Some news from p2p lending in Asian markets:

Chinese PPdai.com (see earlier coverage) says it has received a first round of funding from Essentia Private equity. The amount was not disclosed.

On February 27th, Zopa's managing director Giles Andrews mentioned in a webchat "I have also been spending time in Asia and hope that we will launch in 2 very significant markets there in 2008, one of which we may even announce shortly….".
In the webchat Giles Andrews also said regarding the US market: "@Tealer We also think that our "competitors" over there are illegal, and I don't want to go to jail!".
Furthermore Zopa said it plans to launch an (optional) capital guarantee product in the UK market.

See earlier coverage of P2P-Banking.com on the p2p lending markets in Corea, China, India or Japan.

Ppdai – p2p lending reaches China

Soon p2p lending via the internet will be available in the country with the largest population: China. Shanghai based startup Ppdai.com which is currently in its test period and open by invitation only, plans to launch in July. Two of the founders are former Microsoft employees.

Gu Shaofeng (Jack Gu), CTO of ppdai, told P2P-Banking.com: "Ppdai.com will be targeted at the small P2P loan in China (the root of P2P concept). The unique part is it emphasize the important of 'Friends', the concept of the Social Networking. Ppdai.com encourge users to lend to Friends, or friends'friend to reduce the risks."

As far as I can see the concept is a copy of the Prosper model (possibly without the groups). The minimum bid is only 50 Chinese Yuan – less then 7 US$.

According to the website, laws and regulation in China are not defining terms for p2p lending, but indirectly it can be assumed that p2p lending is not prohibited provided interest rates are not exceeding 4 times the interest rates of bank loans.

While browsing the site I noticed that the design is closely resembling designs of Smava, Prosper and in one occassion Lendingclub.

Smava original logo and homepage:
Smava Original (wiseclerk)

 

 

 

 

 

 

 

 

 

 

Ppdai imitation:
PPDAI imitation

 

 

 

 

 

 

 

 

Prosper original bidding icons:
Prosper bidding (wiseclerk)

 

 

Ppdai copycat (text translated):
ppdai bidding copycat